BIOSEEK PLC 
By ("Asterand" or the "Group")
INTERIM MANAGEMENT STATEMENT
Asterand plc (LSE: ATD), a leading provider of human tissue
and human tissue-based services to pharmaceutical and
biotechnology companies engaged in drug discovery research,
today issues its Interim Management Statement.
In the Company's Interim Results statement on 31 August 2011,
Asterand announced that volatile trading conditions had led
to a reduced outlook for the year and that further funding
would be required as the Company was in breach of its banking
covenants.
After a downturn in the Tissue business during the third
quarter, trading conditions have improved and the Company now
expects Tissue revenues to be in line with 2010. BioSeek has
consolidated its trading in the second half to date after
achieving strong growth in the first half. Overall, the
Company continues to expect that Group revenues for the full
year ended 31 December 2011 should exceed
2010.
Whilst the Company is encouraged with the upturn in the
operational performance, the balance sheet remains an issue
that needs to be resolved. The Company previously announced
that events of default had occurred in respect of both the
Silicon Valley Bank debt and the loan notes with former
BioSeek shareholders. These debts amount to approximately
US$9m in aggregate. The need to settle these notes led the
Board to look first at a re-financing of the Group and then
to commence, on 24 October
2011, a formal sale process. The Board's initial estimates of
the cash available to the Company have been reviewed and in
light of both the upturn in trading and improvements in cash
collection and working capital control, the Board now
believes that it has sufficient working capital to continue
into the early part of 2012. As a consequence, the Company
has extended the timeframe for the formal sales process and
continues to evaluate the options of either a sale of the
business or a re-financing.
As well as experiencing challenging trading conditions since
30 June 2011, the Company has also experienced management
changes with both the CEO, Martyn Coombs, and the CFO, John
Stchur, leaving the Company. Alan Fishman was appointed as
Interim CFO with Jack Davis, the Company's Chairman, taking
on the role of Interim CEO. Discussions regarding the
appointment of a new CEO have been suspended for the period
of the formal sale process.
"The second half of 2011 has been a turbulent one for the Company. Asterand started the year with high expectations only to experience volatile trading in the first half which adversely impacted certain key financing arrangements and a weakening of our balance sheet. Whilst the expected increase in revenues for the final quarter has improved the general outlook, our balance sheet issues continue to dominate the actions of the Company."
Contacts: Asterand plcJack Davis, Chairman and Interim CEO Tel: + 44 (0) 1763 211 600 /
+ 1 (313) 263-0960
Alan Fishman, Interim CFO As above
Daniel Stewart & Company plcAntony Legge Tel: +44 (0) 20 7776 6550
Buchanan CommunicationsLisa Baderoon / Mark Court / Isabel Podda Tel: +44 (0) 20 7466 5000
About AsterandAsterand plc is a leading supplier of high quality human tissue and tissue-based services. Our comprehensive approach to human tissue and research services offers pharmaceutical, biotech and diagnostic companies the unique opportunity to have one company meet all of their human biomaterial needs along the continuum of drug discovery and development. Our mission is to accelerate target discovery and compound validation and enable pharmaceutical and biotechnology companies to take safer and more effective drugs into the market. For more information about Asterand, go to www.asterand.com.
